International Business

Cooperative Strategy: Managing Alliances, Networks, and by John Child

By John Child

Strategic alliances are more and more universal, as many agencies glance in the direction of quite a few partnering preparations. This moment version of recommendations of Cooperation extends the 1st edition's transparent and accomplished survey of strategic alliances. providing diverse disciplinary views (economics, technique, association concept) and diverse examples from the company global. The textual content has been completely revised and up to date, taking account of latest theoretical types, and its insurance of case reviews has been prolonged. it will likely be excellent for enterprise scholars and bosses alike wishing to appreciate the demanding situations of coping with alliances.

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Additional resources for Cooperative Strategy: Managing Alliances, Networks, and Joint Ventures

Example text

Likewise, the value brought by these particular resources is difficult to generate with alternative resources. Thus, resources that are idiosyncratic to the firm and that generate economic value for customers provide access to rents for an extended period and so provide sustainable competitive advantage. Barney (1991) says that such resources may be physical, human, or organizational. However, since physical resources tend to be used up or worn out, or are ultimately replaceable or duplicable, and since human resources can quickly leave, or threaten to leave and thereby appropriate more of the rents, only organizational resources can generate sustained competitive advantage.

For instance, a major international company producing industrial ink-jet and laser printers formed an EJV with another diversified transnational firm as a basis for undertaking product assembly and more extensive marketing in China. The latter firm had over ten years experience in China and was able to provide access to its distribution system, to managers who are competent in the local environment, and to its knowledge of how best to deal with government agencies. Parkhe’s (1993b) research on 111 interfirm alliances having at least one US partner tested several propositions drawn from TCE.

Organization theory’s contribution comes through the resource dependency perspective and through a consideration of how to organize alliances. It also emphasizes the importance of trust in cooperative activity, without which alliances are likely to be short-lived (see Chapter 4). 2 Strategic-management theory The perspective on cooperative strategy offered by SMT draws attention to the need for prospective partners to achieve a fit between their respective strategies, so that an alliance between them makes a positive contribution to the attainment of each party’s objectives.

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